Adopting an industry-consumer-friendly approach for broadcasting and cable services, telecom regulator Trai has said there would be no price regulation on pay/premium channels except the limited regulation of 20 per cent as the ‘maximum discount’ on a bouquet of premium channels in the conditional access system (CAS) areas.
It has also recommended an 8 per cent annual licence fee for direct-to-home operations.
In order to promote growth of Internet and broadband in the country and to make DTH services affordable, the authority said, “the annual licence fee of 8 per cent should be applied on adjusted gross revenue.”
According to draft recommendations, the Telecom Regulatory Authority of India has said that for CAS (conditional access system), in areas like Chennai, the existing price regulation would be withdrawn.
For the non-CAS areas, the authority has recommended ceiling rates prevailing on December 26, 2003, plus 5 per cent.
“The ceiling rates at which the charges will be paid by the cable subscribers to cable operators, cable operators to multi-system operators (MSOs) and MSOs to broadcasters, will be those prevailing on December 26, 2003, plus five per cent,” Trai’s draft recommendations said.
The price ceiling would be adjusted downwards proportionately in the event of conversion of pay channels to free-to-air (FTA) or to a premium channel or on discontinuation of a pay channel.
On the issue of pricing of basic service tier, it has been recommended that basic tier services should be fixed by Trai in consultation with the state governments.
“Pending the determination of price as per the above recommendation, Rs 72 per month (excluding taxes) plus 5 per cent will be default rate for CAS areas. For networks deploying traps, additional Rs 5 per subscriber per month will be payable.”
On the issue of the periodicity of revision of rates, the Trai recommended that a notice of one month be given before the prices were changed. With regard to interconnection agreements and revenue-sharing, the authority is of the view that in CAS areas, the revenue-sharing arrangements among the broadcaster, the MSO and the local cable operator, shall take place out of the proceeds of the amount payable by the subscriber.
“The service providers shall mutually negotiate and decide on the revenue arrangements,” Trai said adding where parties were not able to arrive at an agreement within 30 days of initiating such a process, the authority shall issue a regulation.
While in non-CAS areas the ceiling revenue payable by an MSO to broadcaster and a local cable operator to the MSO shall be as that payable as per agreements prevailing on December 26, 2003, plus 5 per cent, Trai said, adding that additional amounts can be charged for new pay channels.
Our typical marketing budget is usually 10 per cent of the topline spend
There are some forces impacting the way our business works. The IT/ITeS sector has changed tremendously. Platforms like Twitter have made everyone journalists. Smartphones have made everyone a photographer. The trend that we are seeing is one of hyperdigitalization, which is causing the lines between product and services to blur. For example, <a href=http://www.exchange4media.com/company/news/amaz...
The OOH sector is among the fastest growing, globally. Brands and marketers have realized its potential and impact and begun to craft medium-specific adverts. Self-regulation is not only necessary but also essential to growth of the sector. The industry needs to exercise a certain level of this self-restraint to prove its commitment to maintaining the best standards in advertising.
<b>Clients are looking for experiential solutions beyond radio or print: Abraham Thomas, Radio City 91.1 FM</b><br><br> From entering new markets to launching large format events, Radio City 91.1FM has been on a roll. The radio channel recently announced the launch of India’s biggest singing talent hunt-Radio City Super Singer Season 8. Earlier this year, the channel set up its own creative-cum...
The interesting animated rap music video encapsulates Droom’s ecosystem tools and their role in facilitating second-hand automobile transactions
Perfumes are invisible and these new ads from Skinn create a story out of this
New campaign aims at first-time users by providing ‘first-night free’ – a first-ever offering by the brand on online hotels booking